February 24, 2024
When Charlie Munger joined Berkshire Hathaway, a $100 investment would now be worth nearly $400,000. cnn business


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Billionaire investor Charlie Munger was affectionately called a “disgusting man” by close friend and confidant Warren Buffett. That nickname was fitting in many ways.

Munger, a billionaire investor and vice chairman of Buffett’s investment firm Berkshire Hathaway, died Tuesday morning at the age of 99.

Buffett, who often gave Munger his nickname to check his enthusiasm, said Tuesday that the company “could not have been built to its current position without Charlie’s inspiration, knowledge and involvement.”

Munger was best known as Buffett’s right hand and half of the formidable duo that led the company’s famous annual shareholder meetings in Omaha. But he was also a force of his own.

If someone had invested $100 in Berkshire Hathaway in 1978, the year Munger joined the company, the investment would be worth about $400,000 as of Tuesday’s close — about the same as $100 invested in the benchmark S&P 500 that same year. Much higher than the US$16,527. , according to data from Bespoke Investment Group. (Berkshire Hathaway’s shares, which did not then have separate classes, ended 1977 at $138 per share.)

So, what was Munger’s investment approach? Munger’s temperament was at times sudden and rough, as has been well documented since his days at Harvard Law School. “Actually, Charlie was in a hurry,” says Michael Broggi. Poor Charlie’s Almanac – But his approach to assessing whether a company was worthy of his investment was a long and detailed process.

Munger bets big, long and selectively using an intensive screening process. According to the book, he looked for easy-to-understand businesses that could thrive in any market environment. They screened investment candidates using “multiple mental models”, which, simply put, It involved collecting and analyzing information about the internal and external environments in which companies operated.

Once Munger concluded that a business was worth his hard-earned money, he would place a big bet and leave it alone – “sit-on-your-ass.”, Investing,” as he put it. “You’re paying less to the brokers, you’re hearing less nonsense, and if it works, the tax system gives you an extra one, two or three percentage points per year,” Munger said.

His approach paid off handsomely with Buffett. According to Bespoke, Berkshire outperformed the S&P 500 during 31 of the 46 years the company has been in business.

Some of his decisions did not require so much microscopic analysis – Munger had a deep but simple dislike of digital assets.

“I hated it as soon as it was raised, and the more popular it became, the more I hated it,” Munger said at The Daily Journal’s annual meeting in 2018. “Who would want their kids to grow up and buy things like Bitcoin?”

Your true love’s lavish — and surprisingly bird-filled — holiday gift-giving ritual is more expensive than ever.

But at least this time, inflation isn’t as intense, my colleague Alicia Wallace reports.

The price of the dozen gifts mentioned in the song “The Twelve Days of Christmas” was at an all-time high of $46,729.86 this year, according to PNC Financial Services’ 2023 Christmas Price Index, a light-weighted seasonal report that measures the average change. The classic Christmas carol features a single pheasant, two turtle doves, seven swans, 12 drummers and other gifts.

The Christmas Price Index, now in its 40th year, is a spin on the Bureau of Labor Statistics’ Consumer Price Index and is intended to highlight changes in the market over time while educating consumers about the economy.

The 2023 price tag is 2.7% higher than a year ago, representing a much more pleasant increase than the astonishing 10.5% jump seen at this time last year.

The leisure index is also running slightly cooler than its traditional counterpart, the consumer price index, which was up 3.2% for the 12 months ending in October and up 7.7% this time last year.

There’s Something (Tortoise) Worth Feeling: Even festive and unofficial inflation gauges are feeling the effects of one of the most aggressive interest rate hike cycles in US history.

Read more here.

Rite Aid is closing about 30 locations across the U.S. in addition to the 100 bankrupt chains the chain announced last month as part of its restructuring efforts.

The latest round of closures was revealed in a bankruptcy court filing that closed 31 stores in a dozen states, including seven in California, four in Pennsylvania, three locations each in Ohio, Virginia and Washington, and one in Michigan, New Includes two locations each in Jersey, Oregon. New York. The remaining stores are one each in Connecticut, Maryland and Nevada.

As my colleague Jordan Walinsky reports, Rite Aid will be left with about 2,000 stores when both rounds of closings are complete. The company did not immediately respond to CNN’s request for comment.

Rite Aid, the third-largest standalone pharmacy chain in the U.S., has been in the writing for a while, as the entire drugstore retail sector struggles to compete with Amazon and big-box chains like Walmart, Target, and Costco. Providing a more customer-friendly alternative to pharmacy chains in the region and nationwide.

Compounding its problems were legal troubles stemming from allegations of filing illegal opioid prescriptions for customers.

Read more here.

Source: www.cnn.com

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